Okla. Stat. tit. 68, § 68-1404.1

taxes.

A. In order to administer the exemption for sales to a

qualified manufacturer as provided by Section 1359 of this title as

applicable to the use tax imposed by law, there shall be made a use

tax refund for state and local taxes paid by qualified manufacturers

for tangible personal property purchased to be consumed or

incorporated in the construction of a new manufacturing facility or

to expand an existing manufacturing facility in the state from the

account created by this section.

B. The Oklahoma Tax Commission shall transfer each month from

use tax collected the amount which the Commission estimates to be

necessary to make the use tax refund provided by this section to an

account designated as the Commission determines.

C. Any refund shall be paid from the account prescribed by this

section at the time the claim for refund is approved by the Oklahoma

Tax Commission. The amount of the refund shall not exceed the total

state and local use taxes paid together with accrued interest upon

such total. The amount of interest paid to a qualified manufacturer

upon the principal amount of any refund made to such manufacturer

for purposes of administering the exemption provided by Section 1359

of this title shall be determined according to the provisions of

this subsection. For any month during which the Oklahoma Tax

Commission transfers a sum to the account prescribed by subsection B

of this section, the Commission shall determine an interest rate by

determining the rate of interest paid for a three-month Treasury

Bill of the United States government as of the first working day of

the month in which the transfer is made. The interest rate so

determined shall accrue upon the amount transferred to the account.

In each subsequent month, the Commission shall determine the

interest rate paid for a three-month Treasury Bill of the United

States government as of the first working day of the month and such

interest rate shall accrue upon any amount transferred during the

month and upon the amounts previously transferred to the account

together with interest previously accrued upon such amounts.

D. For purposes of this section, state and local use taxes paid

by a contractor or subcontractor for tangible personal property

purchased by that contractor or subcontractor to be consumed or

Oklahoma Statutes - Title 68. Revenue and Taxation Page 659

incorporated in the construction of a new or expanded manufacturing

facility pursuant to a contract with a qualified manufacturer shall,

upon proper showing, be refunded to the qualified manufacturer.

E. The qualified manufacturer shall file with the Oklahoma Tax

Commission the following documentation for any refund claimed:

1. Invoices indicating the amount of state and local use tax

billed;

2. Affidavit of each vendor that state and local use tax billed

has not been audited, rebated, or refunded to the qualified

manufacturer but rather the use tax charged has been collected by

the vendor and remitted to the Oklahoma Tax Commission; and

3. All additional documentation required to be submitted

pursuant to rules promulgated by the Oklahoma Tax Commission.

F. In the event that state and local use tax was paid by a

contractor or subcontractor, the qualified manufacturer shall file

with the Oklahoma Tax Commission all documentation required in

subsection E of this section but in lieu of the affidavit of each

vendor the qualified manufacturer shall file, for any refund

claimed, an affidavit from the contractor or subcontractor stating

that the use tax refund of the qualified manufacturer is based on

state and local use tax, paid by the contractor or subcontractor on

tangible personal property purchased to be consumed or incorporated

in the construction of a new or expanded business activity and that

the amount of the state and local use tax claimed was paid to the

vendor and no credit, refund, or rebate has been claimed by the
the use tax refund of the qualified manufacturer is based on

state and local use tax, paid by the contractor or subcontractor on

tangible personal property purchased to be consumed or incorporated

in the construction of a new or expanded business activity and that

the amount of the state and local use tax claimed was paid to the

vendor and no credit, refund, or rebate has been claimed by the

contractor or subcontractor.

G. Only sales of tangible personal property made after June 1,

1988, shall be eligible for the refund established by this section.

H. The qualified manufacturer shall file, within thirty-six

(36) months of the date of the first purchase which is exempt from

taxation pursuant to the provisions of subsection (H) of Section

1359 of this title, with the Oklahoma Tax Commission, a

certification issued by the Employment Security Commission in order

to qualify for the refund authorized by this section.

I. Notwithstanding the provisions of any state tax law, the

amount refunded under this section shall be assessed if the number

of full-time-equivalent employees drops below the number prescribed

in subsection (H) of Section 1359 of this title, as amended by

Section 1 of this act, at any time within thirty-six (36) months of

the date certification is issued by the Oklahoma Employment Security

Commission.